Contextual advertising as a tool for testing marketing hypotheses

Contents:

• Choosing tools is testing
• The main advantages of context
• How hypotheses are tested
• This is just the beginning

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About the author

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Head of the integrated internet marketing agency Wemakefab with over 11 years of experience. We have successfully completed 374 online business promotion projects, providing effective solutions for online exposure and customer acquisition. Our team has in-depth knowledge of digital marketing, which allows us to develop strategies that facilitate business growth and development in the online environment.

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When a client contacts an agency, they are often not looking for specific promotion tools, platforms, or technologies. In most cases, their thinking boils down to the following: "Internet marketing can attract clients, and their cost should be acceptable for my business." This is the basic hypothesis that the client seeks to confirm. Understanding this motivation allows the agency to offer effective solutions tailored to the client's needs and goals, which ultimately contributes to the growth of their business.

Choosing tools is testing

Modern marketing is not just a set of secret strategies that can guarantee success under certain conditions. It's more of a set of hypotheses that may be effective in some situations and completely ineffective in others. To create an effective marketing strategy, it's essential to regularly test various approaches. This allows you to identify effective methods and eliminate those that aren't delivering the desired results. Effective marketing is based on data and experience, making it dynamic and adaptive to market changes.

The plethora of articles about online promotion can be overwhelming. Topics such as neural networks, artificial intelligence, bots, virtual reality, and eye-catching case studies about market conquest often seem far removed from real-world practice. In reality, successful online promotion requires a deep understanding of the target audience, an effective strategy, and the practical application of technology. It's important to focus on real tools and methods that will help achieve results, rather than obsessing over fashionable trends.

There are many tools, but each specialist prefers their own. It's common to see recommendations to start with developing a strategy, formulating a mission, and conducting research. Such advice can be perceived as an attempt to increase the cost of services rather than as truly useful steps to achieve goals. It's important to understand that the approach to choosing tools and methodology depends on the specific task and the context in which the specialist works.

Verifying the availability of clients online at an affordable price is most effectively accomplished through contextual advertising. This method often serves as the starting point for an advertising campaign and, in some cases, remains the only tool for attracting clients. Contextual advertising allows you to quickly test the demand for services or goods and obtain valuable data about the target audience.

The main advantages of contextual advertising

• Firstly, with the help of contextual advertising it is quite easy to predict The entire future funnel: we know the number of impressions for keywords, the approximate cost per click is clear, and there is an average conversion rate.
• Secondly, we identify existing demand and offer it to a "warmed-up" audience. We provide an offer in response to a user who is already searching for a specific product/service, rather than trying to generate demand (for example, by showing banners to social media users who are thinking about something completely different at the time).
• Thirdly, launching contextual advertising on search takes, on average, 1.5 times less time than, for example, advertising on the same social networks. We don't need to develop creatives and test different audiences.

How hypotheses are tested

The main task is to analyze the deviation of actual funnel indicators from the predicted ones. Adjustments to the forecast are necessary for effective scaling. The first stage of analysis typically takes about two months, but this time may vary depending on the specifics of the topic.

The first month is the preparatory stage. During this period, we develop landing pages, set up end-to-end analytics, and build a semantic core. These actions are important for effective website promotion in search engines and increasing its visibility. Properly configured analytics will allow you to track user behavior, and the semantic core will help you create content that meets the needs of your target audience.

The second month includes the launch of the advertising campaign and analysis of its effectiveness. At this stage, we receive real data from the sales funnel, which allows us to adjust the strategy. It's important to add missing hypotheses and tools for testing them to optimize advertising efforts and increase conversion.

We have examples where, after conducting a trial phase, we concluded that further work was inadvisable. For example, in the car rental industry, a high search volume didn't guarantee a significant number of requests at prices acceptable to the client. In this case, offline channels demonstrated more effective results at significantly lower costs.

Testing the hypothesis proved to be a more cost-effective solution for the client than immediately implementing a long-term strategy. Instead of a comprehensive approach including website development, SEO optimization, remarketing, and social media promotion, we proposed creating a single promo page and allocating a budget for a month of contextual advertising. This allowed us to save money and evaluate the idea's effectiveness before committing to large-scale investments.

This is just the beginning

If you've tried contextual advertising and haven't achieved the expected results, don't give up on digital promotion. There are many other tools that may require more time and resources but can provide a more sustainable effect. However, if there's an opportunity to see results quickly, it's worth taking advantage of it. The effectiveness of contextual advertising can vary depending on many factors, so it is important to analyze and optimize campaigns to achieve maximum returns.